The term “bully offer” is not one you want to hear when putting in an offer. When you decide it’s time to sell your house, there’s a process you will be advised to follow. Once listed, a date will be chosen signifying to buyers when you will begin to accept offers. This date is usually seven days from the day on which the house is listed. Yet, there are circumstances in which you might receive a bully offer from a potential buyer.
What is a Bully Offer?
A bully offer is another term for a preemptive offer. The potential buyer will submit a bid to their agent. It will then be delivered to the seller before the official bid review date.
There has to be good reason for a potential buyer to submit a bully offer. Their real estate agent won’t waste your time by submitting an early offer that’s low. Nor will your agent take any such bids to you before your review date. A potential buyer that is submitting a bully offer is typically willing to pay above the list price to avoid competition. The offer is usually free of any conditions and will be submitted with a bank draft for deposit.
Accepting a Bully Offer
If you agree to look at the bully offer, then your official bid review date is void. Your agent will then be obliged to let all the other agents and buyers know that there is no longer a review date. This will also give other buyers a chance to submit competing bids right away.
To avoid competition, bully offers will generally have a short irrevocable date. This gives you only a short amount of time to make a decision. The buyer will do this to try and prevent competing buyers from getting their bids together.
You should always discuss the offer with your real estate agent to make sure you make the right decision.
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